Mar. 11, 2019

National hydrocarbons and Shell Columbia have signed offshore production agreements .

The presidents of the National Hydrocarbons Agency – ANH, Luis Miguel Morelli, and Shell in Colombia,
Ana María Duque; with the accompaniment of Vice Minister of Energy, Diego Mesa and Ines Liebing,
Director of Shell Exploration and Production Colombia GmbH, signed two important offshore Exploration
and Production (E&P) contracts for the “COL 3” and “GUA OFF 3” blocks in the Colombian Caribbean
Sea.
According to the president of the ANH, Luis Miguel Morelli: “the signing of these contracts revalidates the
confidence of oil investors in the exploration of our offshore resources in the Caribbean. Shell assumes
investment commitments of more than 100 million dollars for the first phase of exploration in these two
blocks. However, if Shell later decides to continue with the exploratory program of the following two
phases, the investment in its entirety may exceed 650 million dollars. This investment is in addition to the
nearly 400 million dollars announced recently by Petrobras in the Tayrona block and Ecopetrol in the COL5
block. The wave of offshore exploration in Colombia continues to grow and it is the result of the
successful execution of the Iván Duque’s government commitment to reactivate the hydrocarbons industry
in the country”.
The exploration proyect, which corresponds to the blocks “COL 3” (400,000 hectares) and “GUA OFF 3”
(480,000 hectares), will be developed in an area that, as a whole, covers 880,000 hectares. In the contract
for the “COL 3” block, the commitment is to develop a Minimum Exploratory Program (PEM), which
includes the reprocessing of 3D seismic over an area close to 1,000 Km2 , and the drilling of at least one
exploratory well in the first phase. The contract for the “GUA OFF 3” contemplates a three phase PEM that
includes the acquisition of 2,461 Km2 of 3D seismic, the taking of 43 samples of Piston Core and the
reprocessing of 3D seismic over an area close to 2,000 Km2
, in the first phase. The Agency estimates that
if the PEMs are fully developed, the investment commitments could exceed 650 million dollars.
The Vice Minister of Energy, Diego Mesa, stressed that: “the signing of these two new offshore Exploration
and Production contracts is good news for Colombia. The confidence shown by the companies allows us
to look at the energy future with good prospects to continue moving towards the reactivation of the oil
sector. Increasing oil and gas reserves, which today are 5.7 years and 11.7, respectively; is essential to
ensure energy self-sufficiency and to generate more employment, tax revenues, and opportunities for the
country and the regions”.
On the other hand, Ana María Duque, President of Shell in Colombia, said: “We are very happy to sign
these exploration contracts. They represent a great step for the country on many fronts. We will increase
our knowledge of the Offshore resources availability, expand the deepwater exploration frontier, and offer
us the option to continue to strengthen relationships with communities. With these contracts, Colombia
wins. In addition, we will bring a co-owner, subject to the corresponding government approvals”.